To: All Property and Casualty Insurers and Producers
Nebraska has a number of disaster areas related to the recent flooding. Numerous individual residences and businesses are located in evacuation zones. Leaving personal property in areas that either are or potentially are in evacuation zones increases the risk that the personal property will be subject to covered perils such as fire, theft and vandalism.
Under most commercial property coverages and some homeowner and related dwelling type policies, there are limitations of coverage for personal property removed from the insured premises. These same policies also exclude coverage for neglect of personal property. Some policies also provide coverage for preservation of property.
The Director has determined that it is not reasonable to compel insureds to comply with neglect and/or preservation of property provisions while at the same time subjecting their property to drastically reduced levels of coverage. It is, therefore, strongly encouraged that any property removed from its insured premises on or after May 25, 2011, from areas flooded or in danger of flooding should be covered at the same amount as if the property were located at the insured premises. After July 15, 2011, insurers may subject the personal property to any applicable reduced coverages as provided for in the policy for being located away from the insured premises.
The July 15, 2011 time frame applicable to personal property removed does provide producers and their insurers time to extend or add coverage as may be needed by affected insureds. In order to expedite the providing of additional coverage for relocated personal property, a suspension of certain rate and form filing requirements is hereby provided. For any policy form issued in this state, which will add or enhance coverage for personal property located away from the insured premises for dates of coverage commencing between June 1, 2011 and September 1, 2011, insurers are reminded of their ability to use forms immediately upon filing.
In order to provide affected insureds with the information necessary to make claims and to take other steps as may be provided for or required under the terms of the policies, insurers must provide duplicate copies of policies to insureds upon request without charge.
If, for reasons such as administrative efficiency, an insurer wishes to comply with this notice by providing coverage to insureds on a wider basis than the identification of specifically affected insureds, such more favorable treatment is specifically permitted by this notice. The more favorable treatment can include but is not limited to application of this notice on a territory, zip code or statewide basis.
The provisions of this notice apply to any insurer providing coverage to an affected person in this state whether the coverage is provided on an admitted or surplus lines basis. Affected persons include coverage either upon individuals or their property located in this state.
Questions concerning this notice should be directed to the Department’s Property/Casualty Division Administrator at 402-471-2201.
